Advanced Search
MyIDEAS: Login to save this article or follow this journal

Bank Size, Collateral, and Net Purchase Behavior in the Federal Funds Market: Empirical Evidence

Contents:

Author Info

  • Allen, Linda
  • Peristiani, Stavros
  • Saunders, Anthony

Abstract

Differences between large and small banks' net purchase behavior in the (uncollaterized) federal funds and (collateralized) repurchase agreements markets are documented. The larger a bank's asset size, the larger, ceteris paribus, its Federal Funds purchases. The threshold-asset size is in the region of $1 billion to $2.5 billion. For any size class, banks located in major banking centers are more likely to be net Federal Funds purchasers than are banks located outside money centers. In the collateralized repurchases agreements market, there appears to be no size of locational discrimination--indeed, the smallest banks are the largest net purchasers (as a fraction of assets) of funds on the repurchases agreements market. Copyright 1989 by the University of Chicago.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.jstor.org/fcgi-bin/jstor/listjournal.fcg/00219398/.61-.67
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Business.

Volume (Year): 62 (1989)
Issue (Month): 4 (October)
Pages: 501-15

as in new window
Handle: RePEc:ucp:jnlbus:v:62:y:1989:i:4:p:501-15

Contact details of provider:
Web page: http://www.journals.uchicago.edu/JB/

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Falko FECHT & Kjell G. NYBORG & Jörg ROCHOLL, 2010. "The Price of Liquidity: Bank Characteristics and Market Conditions," Swiss Finance Institute Research Paper Series, Swiss Finance Institute 10-20, Swiss Finance Institute.
  2. Adam Ashcraft & James McAndrews & David Skeie, 2009. "Precautionary reserves and the interbank market," Staff Reports, Federal Reserve Bank of New York 370, Federal Reserve Bank of New York.
  3. Pritsker, Matthew, 2013. "Knightian uncertainty and interbank lending," Journal of Financial Intermediation, Elsevier, Elsevier, vol. 22(1), pages 85-105.
  4. Brown, Craig R. & Griffiths, Mark D. & Hansen, Wayne E. & Winters, Drew B., 1999. "A profitable trading rule for net borrowers on settlement Wednesday," The Quarterly Review of Economics and Finance, Elsevier, Elsevier, vol. 39(1), pages 129-146.
  5. Morten L. Bech & Enghin Atalay, 2008. "The topology of the federal funds market," Staff Reports, Federal Reserve Bank of New York 354, Federal Reserve Bank of New York.
  6. Fecht, Falko & Nyborg, Kjell G. & Rocholl, Jörg, 2011. "The price of liquidity: the effects of market conditions and bank characteristics," Working Paper Series, European Central Bank 1376, European Central Bank.
  7. Giuseppe Bruno & Ernesto Maurizio Ordine & Antonio Scalia, 2005. "BanksÂ’ participation in the Eurosystem auctions and money market integration," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 562, Bank of Italy, Economic Research and International Relations Area.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ucp:jnlbus:v:62:y:1989:i:4:p:501-15. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.